Australia’s CPI rose 0.7% QoQ (vs 0.8% QoQ) and 2.1% YoY in Q2 2025, easing from 2.4% YoY in Q1 and continuing the downward trend in headline inflation.

• Trimmed mean inflation fell to 2.7% YoY (from 2.9%), the lowest since December 2021.
• Services inflation slowed to 3.3% YoY (from 3.7%), the lowest since Q2 2022, while goods inflation eased to 1.1% YoY (from 1.3%), reflecting lower fuel prices and subdued dwelling costs.
• Electricity prices rose 8.1% QoQ but are down -6.2% YoY due to ongoing government rebates; excluding rebates, prices would be up 0.4% QoQ.
• Food and non-alcoholic beverage inflation held steady at 3.0% YoY, with notable increases in eggs (+19.1% YoY), coffee/tea/cocoa (+9.4%), and snacks (+5.5%).
• Rent inflation eased to 4.5% YoY (from 5.5%), supported by increased Commonwealth Rent Assistance; new dwelling inflation dropped to 0.7% YoY—the weakest since Q2 2020.
• The monthly CPI indicator was up 1.9% YoY in June, down from 2.1% YoY in May and below expectations of a 2.1% YoY increase. Excluding holiday travel and volatile items, CPI was up 2.5% YoY, down from 2.7% YoY previously.